Yellen Concerned about Israel's Threats to Cut off Palestinian Banks

US Treasury Secretary Janet Yellen attends a press conference at the US Ambassador's residence in Beijing on April 8, 2024. (Photo by Pedro Pardo / AFP)
US Treasury Secretary Janet Yellen attends a press conference at the US Ambassador's residence in Beijing on April 8, 2024. (Photo by Pedro Pardo / AFP)
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Yellen Concerned about Israel's Threats to Cut off Palestinian Banks

US Treasury Secretary Janet Yellen attends a press conference at the US Ambassador's residence in Beijing on April 8, 2024. (Photo by Pedro Pardo / AFP)
US Treasury Secretary Janet Yellen attends a press conference at the US Ambassador's residence in Beijing on April 8, 2024. (Photo by Pedro Pardo / AFP)

US Treasury Secretary Janet Yellen said on Thursday she was concerned by a threat from Israel to cut off Palestinian banks from their Israeli correspondent banks, a move that would close a critical lifeline for the Palestinian economy.

Yellen told a news conference ahead of a G7 finance ministers meeting beginning on Friday that the US and its partners "need to do everything possible to increase humanitarian assistance to Palestinians in Gaza, to curtail violence in the West Bank, and to stabilize the West Bank's economy."

She said she would bring up the issue at the meeting of the Group of Seven industrial democracies in the lakeside resort town of Stresa in northern Italy. "I expect other countries to express concern about the impact of such a decision on the West Bank economy. I think this would have a very adverse effect also on Israel."

Israel's Finance Minister Belazel Smotrich has said he cannot renew a waiver that expires on July 1 which allows Israeli banks to process shekel payments for services and salaries tied to the Palestinian Authority, Reuters reported.

In a post on the X social media site reacting to Yellen's comments, Smotrich said he could not sign the waiver because Palestinians are still funding "terrorism" and Israeli banks can be sued for violating anti-terrorism financing laws.

"The financial system of the Palestinian Authority is infected with terrorism up to its neck," said Smotrich, a member of a far-right Israeli coalition partner that supports settlements in the West Bank. He called critics of the policy "hypocrites."

Yellen said it was important to keep open the Israeli-Palestinian correspondent banking relationships to allow battered economies in the West Bank and Gaza to function and help ensure security.

"These banking channels are critical for processing transactions that enable almost $8 billion a year in imports from Israel, including electricity, water, fuel, and food, as well as facilitating almost $2 billion a year in exports on which Palestinian livelihoods depend," Yellen said.

She added that Israel's withholding of revenues collected on behalf of the Palestinian authority also threatens the West Bank's economic stability.

"My team and I have also engaged directly with the Israeli government to urge action that would bolster the Palestinian economy and, I believe, Israel's own security," Yellen said.

Financial tensions between Israel and the US have risen over US sanctions imposed on Israeli settlers in the West Bank.



Egypt, Zambia Discuss Need to Promote Integration Within African Countries

Egyptian President Abdel Fattah El-Sisi received on Monday his Zambian counterpart, Hakainde Hichilema in Cairo (Egyptian Presidency)
Egyptian President Abdel Fattah El-Sisi received on Monday his Zambian counterpart, Hakainde Hichilema in Cairo (Egyptian Presidency)
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Egypt, Zambia Discuss Need to Promote Integration Within African Countries

Egyptian President Abdel Fattah El-Sisi received on Monday his Zambian counterpart, Hakainde Hichilema in Cairo (Egyptian Presidency)
Egyptian President Abdel Fattah El-Sisi received on Monday his Zambian counterpart, Hakainde Hichilema in Cairo (Egyptian Presidency)

Egyptian President Abdel Fattah El-Sisi and his Zambian counterpart, Hakainde Hichilema, have stressed the crucial need to promote cooperation and integration within Africa as part of their countries’ commitment to fostering stability in the continent.

Egypt’s presidential spokesman, Mohamed el-Shennawy, said Monday that the two leaders held a closed-door meeting, followed by expanded discussions that involved the two countries' official delegations.
They also witnessed the signing of a number of cooperation agreements between the two countries, the spokesman said.

Speaking at a joint press conference, Sisi said that he held fruitful and constructive discussions with Hichilema that reflected the shared political will to shore up bilateral cooperation in the political, economic, social and development domains.
Sisi expressed Egypt’s readiness to transfer its development expertise and provide all forms of support and assistance to Zambia with the view to enhancing the capabilities of its workforce in priority areas, and collaborating on strengthening operational frameworks within Zambia's state institutions.

The Egyptian President highlighted the investment opportunities in the “Lobito Corridor” project, as part of efforts to stimulate the engagement of the Egyptian public and private sectors in investment activities in Zambia.

This aims to unlock new avenues for cooperation between the two countries’ business communities and capitalize on the Egyptian-Zambian Business Forum, held during Hichilema’s visit, he said.

“Driven by this commitment, we agreed on enhancing the contractual frameworks between our countries in the areas of political consultation, promotion of mutual investments, agriculture, aquaculture, and infrastructure,” Sisi said.

He added that they also agreed on the importance of joint action and the need to coordinate positions to advance African priorities on the international agenda.

Hichilema and Sisi underscored the importance of reforming continental organizations to boost their capabilities to address current challenges and to better serve the interests of their peoples.

“We emphasized the crucial need to utilize continental frameworks, notably the African Continental Free Trade Area (AfCFTA), the Common Market for Eastern and Southern Africa (COMESA), and the Tripartite Free Trade Area (TFTA), to bolster regional integration and amalgamation among African countries,” Sisi said.

In addition, the talks touched on a multitude of regional and international issues of mutual interest, with special focus on developments in Gaza, Sudan, the Democratic Republic of the Congo, and the Horn of Africa, as well as Red Sea security and water security.
The two leaders reiterated their countries’ commitment to fostering stability in Africa and the Middle East region.